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Backgrounder

Tenggara Backgrounder is a weekly political and business briefing service combining insights and analysis by in-house experts and those from the Centre for Strategic and International Studies (CSIS) and Universitas Prasetiya Mulya, as well as background information from The Jakarta Post journalists. Tenggara Backgrounder provides you exclusive insights into what’s happening behind the scenes along with insider scoops that are not published in the media.

Edition

December 5, 2025

Prabowo’s sluggish response to devastating Sumatra floods

On Nov. 25, flash floods triggered by Cyclone Senyar struck Sumatra, severely damaging Aceh, North Sumatra, and West Sumatra. Two weeks later, more than 3 million people had been affected, with 1 million displaced, 836 dead, 518 still missing, and some 2,700 injured as of 16.00 Western Indonesia Time (WIB) on Dec. 4.

Other Topics
  • Skipping G20, a costly foreign policy blunder for Prabowo
  • IMIP airport raises questions on transparency and oversight
Final warning to customs office: Reform or be replaced

Finance Minister Purbaya Yudhi Sadewa has issued a stark ultimatum to the Directorate General of Customs and Excise (DJBC): repair its battered reputation within a year or face the possibility of another institutional freeze. The warning puts the future of roughly 16,000 employees on the line. But the deeper question is whether the DJBC can truly rebuild itself or whether this threat simply postpones the next cycle of breakdown and intervention.

Other Topics
  • Proposed renewable rule change spark concerns of coal expansion
  • Indonesia’s fiscal strains deepen as deficit rises, revenue underperforms
Edition

November 28, 2025

Power play shakes NU leadership

Indonesia's largest Muslim organization, Nahdlatul Ulama (NU), is facing yet another severe internal rift among its top leadership following the dismissal of its chairman Yahya Cholil Staquf by the organization's supreme council, the Syuriah. Although his close associations with pro-Israel figures have been publicly cited as the cause, the underlying motive behind the firing appears to stem from intense political rivalry among NU elites.

Other Topics
  • House latest to join race to “reform” National Police
  • AGO targets nation’s richest in latest tax graft scandal
When executives criminalized for doing their jobs

Following public outcry, President Prabowo Subianto granted rehabilitation to three former executives of state-owned PT ASDP Indonesia Ferry convicted in the corruption case surrounding the company's acquisition of ferry operator PT Jembatan Nusantara (JN). For many observers, the prosecution of former president director Ira Puspadewi and two other executives epitomizes the criminalization of business judgment.

Other Topics
  • Garuda–Pelita merger plan advances amid financial, political headwinds
  • Patrick Walujo exits as GoTo CEO, speeding up long-awaited Grab–GoTo merger
Edition

November 21, 2025

Controversy persists as House passes KUHAP bill into law

The House of Representatives has enacted the Criminal Law Procedures Code (KUHAP) bill in a significant move by the government to overhaul the colonial-era framework on Indonesia's criminal procedures, despite widespread objections.

Other Topics
  • Police reform from within: A mission impossible?
  • Jakarta, Canberra move forward on stronger security treaty
KMP co-op program funding model draws scrutiny

The Indonesian government has issued new regulations to accelerate the construction of facilities under the KMP program, which has lagged behind expectations. PT Agrinas Pangan Nusantara has been appointed to lead the construction. However, the funding mechanism has sparked controversy, as the Village Fund is being allocated for loan repayments channeled through the Himbara association. This reduces the budget available for other essential village functions, such as stunting prevention.

Other Topics
  • Rethinking Indonesia’s DHE policy amid Rupiah pressures
  • Nickel giant under pressure
Edition

November 14, 2025

Agriculture minister leads attack on press freedom

The Rp 200 billion (US$12 million) civil lawsuit against Tempo magazine now being heard at the South Jakarta District Court has all the hallmarks of a concerted government campaign to silence critical media. The suit, filed by Agriculture Minister Amran Sulaiman, is so weak that the court should have dismissed it with prejudice.

Other Topics
  • Riau politicians’ penchant for old-fashioned corruption
  • Cracks in Jokowi’s dynasty follow legal, political setbacks
Prabowo's plan, tackling Whoosh debt and corruption simultaneously

President Prabowo Subianto has announced that the government will assume responsibility for repaying the Rp 1.2 trillion (US$71.81 million) cost overrun debt incurred by Indonesia's first high-speed railway, Whoosh. Prabowo justified the government's intervention by framing the railway as a PSO, arguing that its benefits extend beyond profit. He further stated that the government intends to fund the repayment using assets recovered from corruption cases, though the feasibility of this approach remains uncertain.

Other Topics
  • Jobless in a Growing Economy
  • Indonesia moves toward Rupiah redenomination during stable period
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